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in the short run, if p > atc, a perfectly competitive firm: question 7 options: a) produces output and earns zero economic profit. b) produces output and incurs an economic loss. c) does not produce output and earns economic profit. d) produces output and earns an economic profit.

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In the short run, if P > ATC, a competitive firm d) produces output and earns an economic profit.

When do perfectly competitive firms make economic profits?

For a perfectly competitive firm to make economic profits, then its prices would have to be more than its total costs. The prices are standard across the industry so perfectly competitive firms need to focus on reducing their costs.

If the Average total costs is more than the price of each unit, then the company would be making economic profit. This would encourage them to produce more of the good.

Find out more on perfectly competitive firms at https://brainly.com/question/29427900

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